CHALLENGES AND OPPORTUNITIES

OF
e-BANKING

PRESENTED BY
VAISHNAVI-283
NITHYANAND-211
ANJANA-122
CHAITANYA-300
JITHIN-221
PRANEETHA-347
 INTRODUCTION

e-Banking, also known as online baking or virtual banking or internet

banking is a system which enables banking transactions like transfer
of funds, payment of loans and EMIs, deposit and withdrawal of cash
virtually with the help of internet. It is one among the extended
features which banking institutions provide, in addition to traditional
banking. e- Banking is the most used feature by the citizens of India
after the effect of demonetization. This feature is assumed to be one
of the most flexible, adaptable and secure ways of transacting
among the users/customers to bank.
 CHALLENGES OR DISADVANTAGES OF E-
BANKING
• India is the IT and tech services outsourcing hotspot of
the world, it's surprising that Internet banking has not
really taken off. Despite the advent of a very tech-savvy
and vast consumer class in recent years, a mix of industry
issues and unique challenges continue to thwart the
expansion of net banking in India. Technology challenges,
IT practices, certain cultural issues, industry lethargy, and
workplace constraints have affected widespread
acceptance of Internet banking. we shall now look into
the major disadvantages of e-banking in India.
 1.Low Broadband Internet
Penetration
• India has one of the lowest broadband connectivity
penetration rates in Asia as compared to Japan,
Taiwan, Korea and Singapore. While the bigger
cities such as Mumbai, Delhi, Chennai, and
Bangalore have relatively better broadband
penetration rates, PC users in smaller cities and
towns still use dial-up options to connect to the
Internet. Slow connectivity speeds often dampen
the online banking experience for many customers
eager to use such services
 2.Fear of Online Threats/Scams
• Ubiquitous and prevalent online threats about
hackers, identity theft, stolen passwords,
viruses, worms and spy ware tend to make
customers wary just like in any other country.
Conservative Indian bank customers used to
years of saving in an erstwhile mixed-socialist
economy are always fearful of losing hard-
earned savings in online scams.
 3.Difficult for first timers
• For a first time user, navigating through a
website of an internet bank may be hard and
may take some time. Opening an account
could also take time as some sites ask for
numerous personal details including a photo
identification which can inconvenience the
potential customer. Because of this
complexity, they may be discouraged to use
this internet banking service.
 4. Security fraud
• Many people shy away from internet banking
because of the security threat. [1]They can't help
but worry about this aspect what with news on
fraudulent bank transactions that pop up every now
and then. However, this should not be a problem as
banks that provide internet banking services
prioritize security above anything else. Since they
value their customers, they always use the most
advanced security technology in protecting their
websites.
 5. Regulation and Legalities
• Internet banking makes it possible for banks and their
customers to do business from anywhere in the world. This
greatly increases the bank's potential client base.
Nevertheless, according to Andrea Schechter of All Business,
the global approach to banking that internet banking permit
makes it extremely difficult for regulatory authorities to
enforce finance laws. Additionally, regulations differ from
nation to nation and banks are not always proficient in the
financial laws for every nation in which they have business.
Schechter asserts that this lack of proficiency opens banks
and their clients up to law violations and lawsuits.
 6. Digital and Financial Divide
• Rupa Rege Nitsure, claims that a digital divide exists
between banks -- i.e., not every bank has access to the
hardware and software necessary to make internet
banking possible. A study led by Joaquin Yang of Georgia
College and State University showed that this problem
may be related to size and financial support a bank has.
Smaller banks tend not to use internet banking because it
is not cost-effective for them. To make Internet banking
more commercially fair to banks and customers, all banks
would need a sufficient funding source so that banks
could eliminate this digital divide.
OPPORTUNITIES RELATED TO E BANKING
Despite of various challenges that are prevailing in context with e-banking in
India, the following opportunities are motivating the marketers for
implementing e-banking:
1. Increasing Internet Users & Computer Literacy The fast increasing internet
users in India can be a very big opportunity and banking industry should en-
cash this opportunity to attract more internet users to adopt internet banking
services.
2. Initiatives Taken By Government Agencies For Financial Literacy
Various government institutions like RBI, SEBI, IRDA and various other market
players have taken a number of initiatives on financial education. They have
prepared a school curriculum along with various topics including internet
banking, banking product and services, net banking to educate the school
students, college students, working executives, middle income group, home
makers, retired personnel, self-help groups etc.
3. Competitive Advantage The benefit of adopting e-banking provides a
competitive advantage to the banks over other players.
ADVANTAGES OF e-BANKING
1. Convenience: e-Banking is a service which is available to anyone and
everyone who is a bank account holder. It allows the customers to
easily access the bank’s website using their username and passwords;
and carry on with the transactions even if the bank is closed.
2. Flexibility: e-Banking, with its flexible services like 24*7 ATMs and
mobile banking is flexible to the customers. It enables the customers
withdraw cash using their debit cards, and payment of bills.
3. Time Saver: This is the greatest advantage to our generation as we are
not able to spend a lot of time for anything. Time management is one
of the greatest challenges in our busy lives. e- Banking enables us to
carry on banking transactions within minutes, not disturbing our
routine.
 FINDINGS

The above pie-chart shows the trafficking of e-banking services by

different users in India. It is clear that most of the users transact
using the internet banking once in a week that is about 40.2% of
them. And, there are 28.3% of users who use e-banking services
every single day.
 CONCLUSION
The internet banking term has been attentive to the Indian background over
time. Most banks have developed ebanking facilities, as both banks and
consumers profit from these facilities. The banks face many problems and there
are plenty of prospects with the banks. The face of Indian banks is transformed
by various financial developments such as Automated Teller Machines, Real
Time Gross Settlement, debit and credit cards, telephone banking etc. This has
prompted bankers to variation their strategic stance from "conventional banking
to banking comfort" and "mass banking to class banking," which is a shift in
perspective from the seller market to the buyers' market in the industry. The
move has also improved the bank accessibility of a common man in line with his
varied demands and needs. In the next few years e-banking is not only
acceptable but is also favored.